An Agents Role

The cynical would possibly contend that the role of an agent is to interpose themselves  between buyer and seller in order that they can take a commission.

Of course we would not say that.

But we do often ponder what the role of the agent should be. We are well aware that over time that role has changed. But the agent must add value to a transaction, otherwise why would vendors and landlords not take on the role themselves?

If  the role of an agent it to put up a sign, advertise on TradeMe, organise tours and then get an assistant to write up an offer, then all of this can be done with ease by professional vendors and landlords. An  agent must contribute more to any  transaction than this.

Whilst real estate firms love to tell us that the agent works for the vendor, even Red Riding Hood’s blind grandmother doesn’t believe this children’s tale. We know that agents work for themselves, and the sole aim is to get a deal across the line so they can be paid.

However, in doing this (getting a deal across the line) agents do have the opportunity to add value that individual vendors and landlords cannot hope to.

Some of this value should be:

Database: In matching buyer and seller or landlord and tenant, the agent should have the advantage of a database of potential clients from their previous and other current activities. An experienced agent should be aware and able to locate the appropriate tenant/purchaser without having to resort to the general community.

Tools: An agent has the tools to be able to produce accurate information about the property for clients. Often owners don’t have ready access to comparables the way agents do. An agent should be able to produce an accurate measure of a property. An agent should have colleagues who have potential client lists which can also be accessed.

Skills and Knowledge: The agent should have a  superior knowledge of the property industry than any client. This is because property is what they are doing all day every day. To add value to the transactional nature of selling and leasing agents need to  be sharing that knowledge with their clients. And there is undoubtedly a skill in matching the right client with the correct property, very often that is a skill which is enhanced by a wide general knowledge of how business operates.

Qualification: No one likes having their time wasted. Efficient qualification is one of the best tools to not only weed out time wasters, but also to ensure that parties are matched with their needs. Agents who fail to adequately qualify tenants or buyers risk losing those potential clients if their time is wasted with viewing inappropriate properties. Similarly wasting landlords time with potential tenants who are not suited or inappropriate will only reduce the willingness of landlords to deal with that agent in future. There is an opportunity cost for all that needs to be factored in.

Negotiation: Agents must have the skills to be able to act as an intermediary between parties. Usually a competent third party is able to broach any gaps in communication and understanding.

Time: An agent has the time to devote to communication with all parties involved. Usually  tenants, landlords, buyers and owners will have other primary businesses that are their main priority, whereas for the agent their primary business is bringing parties together, and ensuring satisfactory deals.

Communication: One of the most apt skills that an agent can bring to the meeting of clients is the ability to ask questions. Very often this skill is held in insufficient regard, but asking the right and appropriate questions will very often expose the needs of the parties, as well as the prejudices, allowing agents to use their communication skills to bridge any gaps in understanding.

Overall, as in any profession, the agent should add value to the parties involved, and the transaction. After all, that is what we pay commission for!